Equity |
6 Months Ended |
|---|---|
Mar. 31, 2018 | |
| Notes to Financial Statements | |
| 9. Equity |
On March 31, 2017, the Company issued approximately 500,000 shares of common stock upon exercise of warrants by two officers and received cash of $1,000,000.
On November 27, 2017, the Company issued approximately 135,655 shares of common stock to JAX Legacy related to the conversion of the subordinated note and the interest through October 4, 2017. The stock was valued at approximately $595,000.
On January 4, 2018, the Company issued approximately 41,000 shares of common stock to JAX Legacy related to the interest on the subordinated note through January 4, 2018. The stock was valued at approximately $105,000.
On January 4, 2018, the Company issued approximately 280,602 shares of common stock to the SNI Sellers related to the accrued interest of approximately $894,000 on the subordinated note through January 4, 2018.
On January 25, 2018, the Company issued approximately 110,083 shares of common stock to a SNI Sellers for the conversion of approximately 110,083 shares of series B preferred shares.
On April 4, 2018, the Company issued approximately 120,654 shares of common stock to the SNI Sellers related to the accrued interest of approximately $297,000 on the subordinated note through April 4, 2018.
On April 4, 2018, the Company issued approximately 42,529 shares of common stock to JAX Legacy related to the interest on the subordinated note through April 4, 2018. The stock was valued at approximately $105,000.
Stock Options and Warrants
The Company has recognized compensation expense in the amount of approximately $629,000 and $385,000 during the six months ended March 31, 2018 and 2017, respectively, related to the issuance of stock options. The Company has recognized compensation expense in the amount of approximately $336,000 and $191,000 during the three months ended March 31, 2018 and 2017, respectively, related to the issuance of stock options.
During the six-month period ended March 31, 2018, there were options granted to purchase 200,000 shares of common stock with a weighted average price of approximately $2.79 per common share. This estimated value was made using the Black-Scholes Merton option pricing model and approximated $508,500. The stock options vest over a period between a one to a four-year period. The average expected life (years) of the options were 10 years, the estimated stock price volatility was 104% and the risk-free interest rate was 2.2%. At March 31, 2018, there was approximately $2,268,000 of unamortized compensation.
At March 31, 2018, there were exercisable options outstanding to purchase approximately 434,100 shares of common stock and exercisable warrants to purchase approximately 497,000 shares of common stock. At March 31, 2018, there were stock options outstanding to purchase approximately 1,160,300 shares of common stock. |